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ROUGH CUTS | How fair is fare contracting?

The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a Show Cause Order to the operator of a taxicab, the driver of which was complained of by a passenger for charging a fixed rate instead of using the meter for the determination of the fare towards his /her destination.
We believe that this should be the process that must be taken to be fair with the driver and the operator. In a statement the LTFRB through its regional director Nonito Llanos said that it wants to find out what possible liability the operator may have for the violation of the driver of the regulations under the franchise.

Yes, as far as we are concerned the driver will be on his own once he is out of the garage bringing the taxicab to pick passengers. The operator of course has the authority to impose rules and regulations to his drivers, as well as the consequences the driver will face should he violate the operator’s established policies.

On the other hand the driver is out there to make a living for his family and his net income will be determined only after he shall have extra money after gas expenses, meals and paid the agreed boundary.
And since the driver has to make sure that he has enough for his family’s needs, then the likelihood is that he will make sure that in his every travel he earns money instead of losing.

Based on what we were told by taxi drivers of our acquaintance they usually resort to proposing a contracted fixed rate fare when the passenger’s destination requires long travel like going to Tagum, Digos, or in areas within Davao City, the destination is in the rural barangays like those in Marilog, Toril or even in Paquibato districts.

The drivers know that going to those places means sacrificing a huge portion of their fuel not earning income since on their way back to the city’s downtown the chance of being able to pick up a passenger is nil. in fact we have a personal experience of agreeing to a fixed rate may be a year back. We came from Cebu and our flight arrived in Davao a little delayed. Since we need to proceed to our rural residence some 33 kilometers from the airport and we have nobody to fetch us, we took a taxicab.

After knowing our destination the driver immediately told us he will agree only to conduct us home if we are amenable to a fixed rate of P400. To make us understand the fairness of his charge he explained to us that his cab consumes 1 liter every 10 kilometers. Thus he would be spending about P350 for gas back and forth in that trip alone. At the rate the taxi fare was determined during that time if he uses the meter it will only give him even less that what he would spend for gas. We understood the taxicab driver’s explanation. So, we obliged. How much more if the destination of the passenger is even farther?
This is one area that should be looked into by the LTFRB and other related agencies for possible consideration.

Of course it is a totally different story if the driver demands that the passenger who approaches him for his cab’s service will insist that the passenger cannot back out and that he/she should agree to the amount demanded by the driver.

On the other hand, under the franchise rules can the driver refuse to conduct a passenger/s to his destination if he feels doing so is more of “charity” act from him rather than a way of earning a living?
We feel that this aspect in running a taxi service is one gray area that needs to be clarified by the LTFRB.
But as to taxicab operators having set up rules including those involving contracting for fixed rates, it is clearly the prerogative of the service establishment to impose to the erring driver the appropriate penalty.
As to the legitimacy and fairness of the penalty. That should already be the province of the Department of Labor and Employment.

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